FY2019 National Defense Authorization Act: An Overview of H.R. 5515, as Reported

FY2019 National Defense Authorization Act: An Overview of H.R. 5515, as Reported

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May 22, 2018
FY2019 National Defense Authorization Act: An Overview of
H.R. 5515, as Reported
The FY2019 National Defense Authorization Act approved
appropriations for military programs of DOD, defense-
by the House Armed Services Committee in the early hours
related atomic energy programs of the Energy Department,
of May 10, 2018, is closely aligned to President Trump’s
and other defense-related programs, such as the FBI’s
FY2019 DOD budget request. The bill (H.R. 5515) would
counter-intelligence operations.
authorize discretionary appropriations totaling $708.1
The FY2019 national defense cap is $647.0 billion.
billion for national defense-related activities of the
However, that cap covers programs that fall outside the
Department of Defense (DOD) and other federal agencies.
scope of the NDAA, such as counter-intelligence operations
As reported by the House committee, H.R. 5515 would
of the FBI, for which the Administration requested a total
authorize $16.0 billion more than the $692.1 billion
of $8.0 billion. Thus, the portion of the national defense
authorized by the FY2018 NDAA (P.L. 115-91) and $1.2
spending cap applicable to spending authorized by the
million less than the Administration requested for national
NDAA is $639.1 billion—the amount that H.R. 5515 would
defense-related programs. (See Table 1.)
authorize.
Of the total that the FY2019 bill would authorize, $639.1
Base Budget, OCO Transfers
billion is identified as funding so-called base budget
Despite the near parity between the Administration request
activities: activities that DOD and other national defense-
and H.R. 5515 in terms of the total FY2019 authorization
related agencies would pursue even if U.S. forces were not
amounts, the bill would shift amounts totaling
engaged in operations in Afghanistan, Iraq, Syria and
approximately $5.0 billion either from the base budget to
elsewhere. The bill also would authorize additional DOD
OCO or vice-versa.
appropriations totaling $69.0 billion—to be designated as
funding for Overseas Contingency Operations (OCO)—that
The bill would authorize as part of the base budget $2.7
would cover the incremental cost of those ongoing
billion that had been requested as OCO funding for the
operations in the Middle East as well as any other costs that
European Deterrence Initiative (EDI). All told, the
Congress and the President agree to designate as OCO.
Administration requested $6.5 billion in FY2019 for the
In Line with Revised Spending Cap
EDI, which is a series of moves intended to beef up U.S.
combat power in Europe in response to ominous Russian
As reported by the House committee, H.R. 5515 is
actions, including the occupation of the Crimea.
consistent with the spending limits (or caps) on national
Largely offsetting that shift from OCO to base budget was
defense programs originally established by the Budget
the bill’s assignment of the OCO designation to
Control Act of 2011 (BCA; P.L. 112-25) and amended most
authorizations for Operation and Maintenance (O&M)
recently by the Bipartisan Budget Act of 2018 (BBA; P.L.
funds totaling $2.3 billion, funds the Administration had
115-123). The cap applies to discretionary base budget
included in its request for base budget authorization.
Table 1. National Defense Authorizations
(amounts in billions of dollars of discretionary budget authority)
2018 Enacted
FY2019
$ Difference
% Difference
National Defense Budget
NDAA
FY2019
Reported
(FY18 Enacted/
(FY18 Enacted/
(Budget Sub-function)
(P.L. 115-91)
Request
H.R. 5515
FY19 Reported)
FY19 Reported)
DOD-Military (051)
605.5
617.1
616.7
+11.2
+1.8%
Atomic Energy Defense
20.6
21.8
22.1
+1.5
+7.3%
Activities (053)
Defense-Related Activities
0.3
0.2
0.3
+0.0
+0.0%
(054)
Subtotal (Base Budget)
626.4
639.1
639.1
+12.7
+2.0%
Overseas Contingency
65.7
69.0
69.0
+3.3
+5.0%
Operations (OCO)
Total (Base + OCO)
692.1
708.1
708.1
+16.0
+2.3%
Sources: FY2018 data from H.Rept. 115-404, Conference Report to Accompany H.R. 2810, the National Defense Authorization Act for FY2018;
FY2019 data from draft Report of the House Armed Services Committee to Accompany H.R. 5515, the National Defense Authorization Act for FY2019,
accessed at https://rules.house.gov/sites/republicans.rules.house.gov/files/CRPT-115HRPT-676.pdf.
https://crsreports.congress.gov

FY2019 National Defense Authorization Act: An Overview of H.R. 5515, as Reported
Add-ons and Offsets
 Fourth Estate. The bill would require DOD, by the end
of 2020, to cut by 25% the cost of several administrative
Apart from those amounts the bill would shift between the
agencies—sometimes referred to as the Pentagon’s
base budget and OCO, H.R. 5515 would make dozens of
Fourth Estate—that are responsible for logistics, human
additions to individual authorization requests with a total
resources, and real property management, DOD-wide. In
value of more than $9 billion. Those additions include: a
the same vein, the bill would authorize for those
total of $2.5 billion for shipbuilding programs, $812 million
agencies $443.5 million less than the administration
for repair and renovation of facilities, $584 million for
requested for FY2019—a reduction of about 5% from
unspecified improvements in combat readiness, and $452
the request.
million for equipment to be given to units of the National

Guard and reserve components.
F-35s. As requested, the bill would authorize $10.7
billion to purchase 77 F-35 Joint Strike Fighters, and
However, the total amount authorized by the bill is $1.2
$893 million in R&D funding for new software and
million less than was requested because those increases are
other improvements slated for incorporation into F-35s
more than offset by over $9 billion worth of decreases,
purchased in future years. However, the bill would bar
most of which, the House committee asserts, should have
the use of 25% of the R&D funds until DOD gives
no adverse impact on DOD operations. These proposed
Congress a detailed schedule and cost estimate for the
reductions include:
improvement program.
 $3.1 billion that, according to the Armed Services
 JSTARS replacement. The House committee objected
Committee, could be made up for by funds appropriated
to the Air Force’s change of plans for its aging fleet of
in previous budgets but not spent.
JSTARS surveillance planes—converted jetliners with
 $2.5 billion that the committee deemed unnecessary
ground-scanning radar. In its FY19 budget request, the
because of cost increases (compared with prior budgets)
service dropped an initial plan to field a new fleet of
that had not been justified or because the request did not
radar-bearing aircraft, opting instead to replace JSTARS
take account of various savings that should be realized.
with a network of other sensors. The committee insisted
 $1.7 billion that duplicated the purpose of funds
that the service continue developing the replacement
Congress had added to the Administration’s DOD
aircraft and authorized $623 million for that purpose.
budget request in the FY2018 Omnibus Appropriations
 Low-Yield Nuclear Warhead. The bill would
Act (P.L. 115-141).
authorize, as requested, $65 million to develop a low-
 $650 million that can be trimmed from the request for
yield warhead for a submarine-launched ballistic
overseas operations because of the declining value of
missile, consistent with a recommendation in the Trump
some foreign currencies compared with the dollar.
Administration’s Nuclear Posture Review.

Selected Highlights
Missile Defense. For missile defense, the bill would
authorize $486 million more than the Administration
 2.6% Military Pay Raise. The bill would authorize
requested, with $175 million of the addition intended to
funding for a 2.6% military pay raise, the same
integrate THAAD and Patriot missile batteries in South
percentage as the President’s budget request. This would
Korea. The overall missile defense increase is more than
be the largest military pay raise since 2010, and matches
offset by reductions to the request totaling $524 million.
private-sector wage growth as measured by the Labor
Of the amounts cut, $425 million was requested for
Department’s Employment Cost Index (ECI).
activities Congress had funded in the FY2018
 End-Strength Increase. It would authorize, as
appropriations bill.
requested, an increase in the active-duty force of 15,600
 Shipbuilding Acceleration. The bill would authorize
personnel, bringing the total to 1,338,100.
$23.7 billion for Navy shipbuilding, an increase of
 Pilot Shortage. Citing Air Force testimony that the
nearly $1.9 billion over the President’s request. In
service has 1,800 fewer pilots than required, the
addition to approving the 10 major vessels requested,
committee report directed the service to evaluate
the bill would authorize two Littoral Combat Ships
whether it assigns too many pilots to non-flying jobs.
(LCSs) and components that would be used in two

attack submarines to be requested in future budgets.
Reports on Leader Misconduct. Section 526 of the bill
would require the publication on a public website of
 ZTE Ban. Section 880 of the bill would bar DOD
redacted reports of substantiated investigations of
procurement of telecommunications equipment or
misconduct by officers in the rank of brigadier general
services from two companies linked to the government
(or rear admiral) or above.
of China: Huawei Technologies Company and ZTE

Corporation.
Pacific Ship Collisions Response. Several provisions
of the bill respond to two ship collisions involving
 Military Parade. The bill would authorize the Secretary
Pacific Fleet destroyers that resulted in the deaths of 17
of Defense to carry out a parade in Washington, DC,
U.S. sailors. Section 905 of the bill would require the
honoring veterans, but would bar the use motorized
Navy to designate one commander to ensure the combat
vehicles, aircraft, or operational units if doing so would
readiness of all Navy ships, wherever they are stationed.
undermine readiness.
Section 321 would require that Navy ships be subject to
“no notice” inspections. Section 323 would limit to 10
Pat Towell, Specialist in U.S. Defense Policy and Budget
years the time that a ship could be based outside the
IF10891
United States.
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FY2019 National Defense Authorization Act: An Overview of H.R. 5515, as Reported

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